There has been a significant instability on the market this season, and disappointing reports have scared some investors. One stock that received a refund after earning was Devsecops platform Gitlab(NASDAQ: GTLB)mainly because investors loved his continuous strong growth. Nevertheless, the shares continue to trade about 25% in the last year.
Let’s look at Gitlab’s closer results in the fourth quarter and the prospect of seeing if this is the right time to buy stock.
Gitlab manages the Devsecops platform (development, safety and surgery) that helps customers in the development of software, at the same time integrating CYBER -Safe in all stages of the process. The company recorded a strong revenue growth that helped Artificial intelligence (AI)-The Gitlab Duo supplement, which can help the developers meet their tasks by offering proposals and automation of coding.
The company managed to consistently increase its revenue by about 30% in the last quarters, and the Q4 was not different. For the Q4 Fiscal 2025, it ended on January 31, the revenue increased 29% compared to the year to $ 211.4 million. This was in advance in front of the previous forecast for the revenue company between $ 205 and $ 206 million.
Metric
Q1 fy24
Q2 Fy24
Q3 Fy24
Q4 Fy24
Q1 fy25
Q1 fy25
Q3 Fy25
Q4 Fy25
Revenue growth
45%
38%
32%
33%
33%
31%
31%
29%
Source: Gitlaba earnings.
Subsign revenues climbed to $ 31% to $ 185.6 million, while the license revenue increased by $ 19% to $ 25.9 million.
Existing customers continue to increase consumption with Gitlab, with their Net retention based on dollars You enter 123%. This metric measures the consumption of existing customers who have been reduced to any customers with at least one year. The number of over 100% means that existing customers have increased their consumption in the last 12 months. Gitlab said that the expansion of the seat made up 75%of the increase, improved customers’ yields contributed 15%and upgrades on a higher level of 10%.
Meanwhile, Gitlab continues strong growth with its business customers. The number of customers with $ 100,000 or more annual repetitive revenues (ARR) climbed to 29% to $ 1,229, while customers with $ 1 million or more jumped to 123 customers.
Strong growth continues to trigger his end, dedicated and Gitlab duo solutions. Ultimate is Gitlab’s higher level platform and now makes half of his ARR, while dedicated to includes additional features such as data insulation and regional residence. The dedicated revenue increased approximately 90% compared to the year in a quarter.
The remaining successful obligations (RPO) increased $ 40% to $ 945 million, while CRPO (current RPO) increased by $ 35% to $ 579.2 million. RPO includes both revenues received from advance payments that are yet to be recognized as income, as well as income from inactive contracts. Harder to help predict future revenue growth.
On the profitability front, Gitlab -O’s custom earnings per share (EPS) doubled at $ 0.33 compared to $ 0.15 a year ago. In the quarter, he had a gross margin of 89%.
In the quarter, the company generated $ 62.1 million customized free cash flow and $ 120 million for a year. The year ended with $ 992.3 million in cash and short -term investments and without debt.
Gitlab predicts a fiscal revenue of 2026 ranges between $ 936 million and $ 942 million, representing a growth of about 24%. Search custom EPS between $ 0.68 and $ 0.72. For a fiscal Q1, it has raised revenue of $ 212 million to $ 213 million, representing a growth of 25% to 26%. Has forecast a custom EPS from 0.14 to $ 0.15.
Picture source: Getty Images.
Gitlab continues to constantly grow its revenue, and at the same time she has seen beautiful operational influences in her business, leading to a strong growth of profitability. In the meantime, its guidelines are conservative, setting the company for some beautiful rhythm results and favorable throughout the year. Last year, the company exceeded the upper end of its forecast by about 4%. If a similar pattern is followed, I would expect the revenue closer to $ 980 million in the fiscal year 2026, which would be about 29% of revenue growth relative to its 24% growth forecast.
The shares are reasonably valued, trading at the price to the sale (P/S) multiple 10 times the fiscal year 2026 analysts. Meanwhile, excluding its net cash, the ratio of the value of the company (EV) is about 9 times for sale. It is a fairly attractive assessment for a software company as a Saas (SAAS) with a high gross margin that increases its revenue in the middle of a 20% plus range.
Generally, Gitlab is a fast -growing Saas company that trades a reasonable estimate that has a nice benefit from AI. The stock should have a lot upside down in the long run.
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